Matson Logistics

Jeremy Martin

Regional and local carriers are becoming more helpful in last-mile delivery, especially for businesses with several distribution centers, as they provide more flexible pick-up and delivery schedules as well as next-day delivery alternatives.

Consumer need for faster delivery times and more visibility has contributed to the overall expansion of retail's e-commerce sector. Even before Covid-19, these dynamics were driving forces behind the rapid expansion of the last-mile delivery stage of online order fulfillment, but the pandemic moved their roles into overdrive.

Consumers switched to online shopping in droves when stay-at-home orders were activated, and in-person shopping dropped due to health concerns and store closures, forcing even more improvements to last-mile delivery operations. Here is how merchants and brands can use last-mile delivery to gain a competitive edge as the e-commerce boom continues.

Focus on Faster

The goal of last-mile logistics is to get things to customers as soon as feasible. Although there is no one-size-fits-all solution for completing online orders, the major logistical goal in the realm of e-commerce is to enable the quickest and most cost-effective delivery.

As same-day and hourly delivery models become the norm, the prevalent approach is to store inventory as close as possible to places with the densest population of customers to meet those needs and control transportation costs. Businesses adapt to this strategy by converting closed storefronts into regional micro-fulfillment hubs and partnering them with last-mile delivery providers to enable faster shipping at a lower cost. Regional and local carriers are becoming more helpful in last-mile delivery, especially for businesses with several distribution centers, as they provide more flexible pick-up and delivery schedules as well as next-day delivery alternatives.

Invest in Inventory Optimization

Diversifying the fulfillment site plan requires entire inventory visibility and control capabilities to bridge the distance between the goods and the customers. Customer order patterns and inventory data should be used in combination as delivery expectations rise to guarantee that all items are adequately stocked in the proper places at all times.

Because of the amount of work and organization required to handle inventory and orders across the network of sites is generally delegated to a fulfillment partner with an advanced warehouse and inventory management system that connects with supplier and vendor systems. Even if the technology and resources are limited, APIs and back-office support services are available online that can help gain visibility into the operations.